Bitcoin Retreats Lower, Why There Is Risk of Sharp Decline

Bitcoin price traded to a new all-time high above $66,800 before correcting lower against the US Dollar. BTC traded below $63,000 and it remains at a risk of more downsides.

Bitcoin rallied above the $65,000 and $66,000 resistance levels before correcting lower.
The price is now trading below $63,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $63,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could accelerate lower if it remains below the $64,000 pivot level.

Bitcoin Price Corrects Lower
Bitcoin price extended its increase above the $65,000 resistance zone. BTC even broke $66,000 and traded to a new all-time high near $66,982.
Recently, there was a downside correction below the $65,000 support level. There was also a break below a major bullish trend line with support near $63,200 on the hourly chart of the BTC/USD pair. The pair is now trading below $63,000 and the 100 hourly simple moving average.
A low is formed near $62,050 and it is now consolidating losses. An immediate resistance is near the $63,200 level. It is near the 23.6% Fib retracement level of the downward move from the $66,982 swing high to $62,050 low.
The 100 hourly SMA is also positioned just above the $63,200 level. A clear break above the $63,200 resistance could open the doors for a fresh increase. The next major resistance sits near the $64,500 level, above which the price might rise towards the $66,000 level.

Source: BTCUSD on TradingView.com
The $64,500 resistance is close to the 50% Fib retracement level of the downward move from the $66,982 swing high to $62,050 low. Any more gains may possibly call for a new all-time high above the $67,000 level in the near term.
More Losses In BTC?
If bitcoin fails to clear the $63,200 resistance zone, it could extend its downside correction. An immediate support on the downside is near the $62,200 level.
The first major support is now forming near the $62,000 level. A break below the $62,000 support may possibly push the price towards the $60,000 support zone.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $62,200, followed by $62,000.
Major Resistance Levels – $63,200, $64,500 and $66,000.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 41,938.24
ethereum
Ethereum (ETH) $ 2,208.57
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 230.99
xrp
XRP (XRP) $ 0.610399
solana
Solana (SOL) $ 60.52
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 2,205.96
cardano
Cardano (ADA) $ 0.399730
dogecoin
Dogecoin (DOGE) $ 0.089264
tron
TRON (TRX) $ 0.102765
chainlink
Chainlink (LINK) $ 15.35
the-open-network
Toncoin (TON) $ 2.39
avalanche-2
Avalanche (AVAX) $ 21.94
matic-network
Polygon (MATIC) $ 0.792756
polkadot
Polkadot (DOT) $ 5.54
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 41,828.21
shiba-inu
Shiba Inu (SHIB) $ 0.000009
dai
Dai (DAI) $ 0.997360
litecoin
Litecoin (LTC) $ 71.87
bitcoin-cash
Bitcoin Cash (BCH) $ 239.98
uniswap
Uniswap (UNI) $ 6.18
leo-token
LEO Token (LEO) $ 3.70
okb
OKB (OKB) $ 57.23
stellar
Stellar (XLM) $ 0.120198
monero
Monero (XMR) $ 169.31
kaspa
Kaspa (KAS) $ 0.138967
true-usd
TrueUSD (TUSD) $ 0.999781
ethereum-classic
Ethereum Classic (ETC) $ 19.83
cosmos
Cosmos Hub (ATOM) $ 9.55
crypto-com-chain
Cronos (CRO) $ 0.094269
internet-computer
Internet Computer (ICP) $ 4.95
near
NEAR Protocol (NEAR) $ 2.17
filecoin
Filecoin (FIL) $ 4.59
hedera-hashgraph
Hedera (HBAR) $ 0.064032
lido-dao
Lido DAO (LDO) $ 2.32
aptos
Aptos (APT) $ 7.38
thorchain
THORChain (RUNE) $ 6.28
bittensor
Bittensor (TAO) $ 320.83
immutable-x
Immutable (IMX) $ 1.42
vechain
VeChain (VET) $ 0.024554
mantle
Mantle (MNT) $ 0.559772
blockstack
Stacks (STX) $ 1.14
binance-usd
BUSD (BUSD) $ 1.00
optimism
Optimism (OP) $ 1.72
quant-network
Quant (QNT) $ 100.13
aave
Aave (AAVE) $ 96.39
the-graph
The Graph (GRT) $ 0.151433
injective-protocol
Injective (INJ) $ 16.05
arbitrum
Arbitrum (ARB) $ 1.06